Moral Calculations : Game Theory, Logic and Human Frailty

If you can get a single one-cent bid, chances are the auction will go to fifty cents. If someone bids fifty-one cents, bidding will almost certainly reach a dollar. If it goes to one dollar and one cent, the sky's the limit. No one wants to be the second-highest bidder. Afterwards the bidders say they spent so much because their opponent "went crazy," which is a little like saying "the fight started when he hit me back."

Everyone has gotten into situations that resembled the dollar auction--where they devoted way too much effort to something not worth the commitment, because the cost of giving up was worse.

Why do we act this way? How can we recognize these traps before we're in too deep? Is there such a thing as rational behavior, and if so, how do we use it to our advantage?

Hungarian mathematician Laszlo Mero introduces us to the basics of John von Neumann's game theory and shows how it illuminates such aspects of human psychology as altruism, competition, and politics. Mero covers such concepts as zero-sum games; Prisoner's Dilemma; the game of Chicken (played with cars in Rebel Without A Cause), where logic proves that the rational strategy is to be irrational; how to be kind to your lover through game theory; and when the Golden Rule works and when it leads to disaster.

Mero shows how game theory is applicable to fields ranging from physics to evolutionary biology, and explores the role of rational thinking in the context of real-life situations ranging from doorway etiquette to the nuclear arms race. He also explains how moral dilemmas arise; how to act rationally and ethically when they do; and how the intersection of rationality and irrationality inevitably becomes what we call "wisdom." This fascinating, urbane book shows us how we can better understand ethical behavior.

I. Introduces some concepts from game theory, psychology
II. Gives examples from fields of economics, physics, biology
III. Discusses rationality and irrationality.

I found the first two parts both helpful and easy to read. They weren't technical at all, there isn't a single formula in the book. However, the last part is very hard to read and understand. I had to re-read some sentences several times and am not sure if I followed the author correctly.

Overall, I would suggest reading the book - it won't take much time and you can learn such concepts as evolutionary stable strategies, mixed strategies. Also, presentation of some concepts from physics and economics is interesting.


Great for learning about Game Theory   May 17, 2002
4 out of 4 found this review helpful

This book is fascinating in how it demonstrates what we do in politics, science, and even meditation can affect our rational (and irrational) decision making processes, both individualy and in community.

I actually got referred to this book by a website that discussed Game Theory and when I went to Amazon to purchase it, I was amused by the reviewers on Amazon that were horrified that the last of the book covered Meditation/Mysticism. Thats what absolutely convinced me to buy it. I am a scientist and I am practicing meditation, I see both sides.

Mero does a great job of showing how Game Theory can explain the Rational and also show how irrational we are. He practically predicts why the reviewers that didn't like the last parts of his book are the way they are, which of course made them say the things they say in the review!

As the famous ad says, Just do it.